AFTER assessing the banking and industrial sectors, the Manufacturers Association of Nigeria (MAN) yesterday gave this verdict: The Federal Government has deployed definite measures to improve the economy.

Though MAN would like the government to do more, it cited such encouraging developments as the reduction of interest rate, establishment of the Bank of Industry and the Small and Medium Industries Equity Investment Scheme as steps taken towards underlining economic growth.

Also, following a series of meetings between the Lagos State government and MAN, the former has reduced the controversial land charges by up to 85 per cent.

A newsletter in Lagos quoted the reduction in import duty on machinery to 2.5 per cent, removal of VAT on industrial machinery, reduction of excise duty on beverages from 30 per cent to 20 per cent, local sourcing of uniforms and ban on importation of textiles as other factors responsible for improvements in the economy.

On other actions to further boost the economy, MAN stressed the need for banks to respect the agreed formula rates adopted by the CBN and the Banker's Committee, whereby lending rates would be kept at four points above the Minimum Rediscount Ratio (MRR).

This was against the background of the reluctance of banks to implement the recent reduction of MRR by the CBN to 16.5 per cent.

MAN also wanted local value added to government contracts, whereby the use of substantial local inputs would be enshrined in all government contracts, while multinational construction companies should be compelled to patronise local Small and Medium Industries (SMIs) for their inputs.

The association also desires the harmonisation of taxes and levies with a view to halting the current harassment and frustration suffered by industries.

According to the association, the pre-registration of imports as a way of checking fake and counterfeit concessions without going to the Federal Ministry of Finance to obtain letter of concession are desirable.

A statement issued after the meetings between the Lagos State government and MAN gave the new charge regime for commercial property as 0.365 per cent as against the old charge of 1.75 per of the value of the property.

The other charges include those for residential/commercial property which is 0.125 per cent as against 0.65 per cent being charged and for industrial premises of manufacturing concerns which now attract 0.125 per cent as against 0.50 per cent.

Owner-occupied residential property now attracts 0.0375 per cent as against 0.15 per cent, while owner-occupied pensioner's property and family compound/public are exempted.

It said the new rates would be applicable for a period of seven years commencing from January 1, 2002. "In effect all bills for 2002 have now been discounted by 75 per cent or more, depending on the class of property in question," it said.

"The property owners who, by virtue of the recalculation of the rates for 2002, who had overpaid their land use charge for 2002, would be issued a credit of overpayment toward future land use charges," the statement noted.

It was also resolved that the current valuations made under the land use charge law of 2001 should not be unreasonably increased in the future with all proposals for review taken in conjunction with independent registered Estate Surveyors and Valuers

"For all defaulting property owners, including those who have paid a portion of their land use charge for 2002, full settlement of the amount due under the revised rates set forth in the new charges is payable on or before April 30, 2003," it said.

The organised private sector has consequently undertaken to withdraw all court actions instituted to challenge the land use charge law and use its best endeavours to get its members to do likewise, the statement added.